IPO New Observation | Net profit surged over 30% last year, Dongguan Securities' three-year IPO journey still unfruitful

On March 31, Dongguan Securities updated its prospectus.
According to disclosures, Dongguan Securities achieved revenue of 3.39B yuan in 2025, a year-on-year increase of 22.99%; net profit attributable to the parent was 1.25B yuan, up 34.89% year-on-year.
Dongguan Securities expects first-quarter 2026 revenue to be between 861 million yuan and 952 million yuan, a year-on-year increase of 26.62% to 39.95%; net profit attributable to the parent is projected to be between 331 million yuan and 366 million yuan, up 63.06% to 80.23% year-on-year. Dongguan Securities states that in the first quarter of 2026, the trading volume of stocks and funds in the Shanghai and Shenzhen markets significantly increased compared to the same period last year, and the company expects brokerage fee net income and interest net income to grow compared to the same period last year.

As early as June 2015, Dongguan Securities submitted its initial public offering application materials to the China Securities Regulatory Commission. Since then, the IPO process has been repeatedly stalled. Since the IPO was accepted in March 2023, it has been in queue for three years without substantial progress.

What is the current status of Dongguan Securities’ IPO progress? Shell Finance reporters contacted Dongguan Securities about this, but as of press time, no reply has been received.

On March 31, Dongguan Securities updated its prospectus. Shenzhen Stock Exchange screenshot

Three consecutive years of performance growth — Brokerage business contributes over 40%

In the past three years, Dongguan Securities has maintained a growth trend. From 2023 to 2025, the company’s revenue was 2.15B yuan, 2.75B yuan, and 3.39B yuan respectively, with net profits of 635 million yuan, 923 million yuan, and 1.25B yuan respectively.

Specifically, securities brokerage remains the largest business segment for Dongguan Securities, contributing the most to revenue and profit. From 2023 to 2025, the net income from agency securities trading fees generated by the brokerage business was 897 million yuan, 1.17B yuan, and 1.64B yuan, accounting for 41.61%, 42.58%, and 48.42% of the company’s operating income during the same period.

Dongguan Securities’ revenue by business segment. Prospectus screenshot

Dongguan Securities mentions, “The company’s income sources are heavily reliant on brokerage business. Since brokerage is greatly affected by market conditions, over-reliance on brokerage makes the company’s income structure less stable and less diversified.”

The company’s investment banking mainly includes securities underwriting, securities sponsorship, and financial advisory services. Affected by industry policies, company policies, team building, and risks in executing investment banking projects, this revenue has continued to shrink.

From 2023 to 2025, net income from investment banking fees was 199 million yuan, 205 million yuan, and 127 million yuan respectively, accounting for 9.24%, 7.47%, and 3.75% of the company’s operating income during the same period.

However, income from Dongguan Securities’ proprietary trading business has maintained growth, mainly including equity investments and fixed income investments. From 2023 to 2025, the total income from proprietary trading was 295 million yuan, 366 million yuan, and 405 million yuan, making it an important part of the company’s operating income.

Credit business, including margin financing, securities lending, and stock pledge repurchase, also continued to grow. From 2023 to 2025, net interest income generated from credit business was 373 million yuan, 427 million yuan, and 582 million yuan, accounting for 17.32%, 15.51%, and 17.18% of operating income during the same period.

Asset management revenue accounts for a small proportion and fluctuates. From 2023 to 2025, net income from Dongguan Securities’ asset management business was 58.9 million yuan, 82.4 million yuan, and 43.3 million yuan respectively, representing 2.73%, 2.99%, and 1.28% of operating income during the same period.

As of the end of 2025, Dongguan Securities’ total assets were 79.55B yuan, net assets were 10.5B yuan, and net capital was 9.54 billion yuan, representing year-on-year increases of 25.85%, 8.3%, and 1.58%.

Three years of no progress in IPO queue — Equity transfers completed

As early as June 2015, Dongguan Securities submitted its IPO application materials to the CSRC. Since then, the IPO process has been repeatedly delayed. By 2025, Dongguan Securities has experienced equity transfers, performance fluctuations, and management personnel changes, but the “listing dream” remains unfulfilled. The Shenzhen Stock Exchange official website shows that Dongguan Securities’ IPO has been stuck at the acceptance stage from three years ago, with no inquiry yet.

Dongguan Securities’ IPO progress. Shenzhen Stock Exchange official website screenshot

Shareholding issues have been a significant “obstacle” in Dongguan Securities’ IPO process. The prospectus shows that the actual controller of Dongguan Securities is the Dongguan State-owned Assets Supervision and Administration Commission, with Dongguan Investment Holding Group, Dongguan Holdings, and Dongguan Investment Holding Capital holding a combined 75.4%. Jinlong Co., Ltd. and New Century Science & Education hold 20% and 4.6%, respectively.

“Significant changes in major shareholders’ equity transfers will have a substantial impact on the listing process. Uncompleted equity transfers could cause structural issues for the company’s listing or even prevent it from going public as scheduled,” said senior securities analyst Wang Jianhui. He pointed out that the company’s shareholding structure is a regulatory focus. If the transfers are completed in a timely manner and new shareholders meet regulatory requirements, and if they actively participate through capital increases, it could promote the company’s listing.

In June 2025, Jinlong Co., Ltd. sold 300 million shares of Dongguan Securities (accounting for 20% of total share capital) through a public listing on the Shanghai United Assets and Equity Exchange. Among them, Dongguan Financial Holdings acquired 193.5 million shares (12.9%), and Dongguan Holdings acquired 106.5 million shares (7.1%).

In March this year, Dongguan Securities completed a new board of directors election. The current board consists of 9 directors: Chairman Pan Haibiao; Directors Huang Zhicheng, Wang Chong’en, Pan Liqing, and Yang Yang; Employee Director Sun Zhichao; and Independent Directors Liu Jinshan, Liu Aping, and Luo Danglun.
From the personnel structure, except for Chairman Pan Haibiao and two independent directors Liu Jinshan and Liu Aping, the other six directors are newly appointed.

Yang Yang, the company’s core executive and President of Dongguan Securities, also joined the board in this election. In June 2024, Dongguan Securities publicly recruited a president. In February 2025, the company decided to appoint Yang Yang as President, and he has held the position for over a year now.

Beijing News Shell Finance Reporter Xu Yuting, Editor Chen Li, Proofreader Liu Baoqing